Should I Buy a New Build?
For many, new-build homes are more appealing than other, older types of properties. After all, they’ve never been lived in – and who doesn’t like new things? But is buying a new build a good investment, and should you choose one over an older house? That’s the purpose of this guide, which looks at whether or not you should buy a new-build home.
Do new builds offer value for money?
The short answer is yes, but it can be somewhat more complicated. While newer homes tend to come with a new-build premium, which can be as much as 29% higher than existing housing, they still tend to offer value in the long term.
New builds appreciate in value just like other properties, which is good news considering there’s a stigma that they don’t increase at the same pace. You can expect your new-build home to see its value rise in a good market.
It’s also good to take demand into account. Many newer homes feature on-site amenities, such as concierge services, gyms and even swimming pools. These features can make them more appealing to buyers, especially as new-build properties are becoming increasingly popular among all types of homebuyers.
Are they more energy sufficient?
Generally speaking, new-build properties are more energy-efficient than older homes. Developers actively build homes that are more eco-friendly and cheaper to maintain. To illustrate, a one-bedroom new build should have a lower energy consumption than a similar size property from the Victorian era.
As a result, owners of a new build can save hundreds of pounds each year in energy costs. That’s because new homes are built to much higher standards than their predecessors. Newer properties can also help lower carbon footprint.
Is the build quality better than older homes?
What about a new build warranty?
Buying a new-build home has several advantages over older properties. Under the NHBC 10 year guarantee, all new homes come with a warranty as standard. This means the developer needs to guarantee the foundation and structure of the home and, in most cases, fixtures and fittings, including appliances.
For homeowners, you don’t need to worry about the stress of paying for expenses if something goes wrong. Plus, because everything is new, you’re far less likely to run into issues regarding maintenance in the new home.
Is it better to buy a new build or an older house?
Whenever you buy something brand new, it comes at a premium. Whether it’s a new car, appliance or house, you can expect to pay more. When it comes to new-build homes, it’s not uncommon to pay higher prices than other similar homes.
For example, a one-bedroom new-build home typically costs more than an older one-bedroom home in the same neighbourhood. Yet, there are many advantages to buying new. Other than maintenance guarantees and cheaper energy costs, you can benefit from:
Fixed prices– you can make an immediate profit on completion if a fixed price was set for the home six months or more before the house completion date, as it may have already increased in value by the time you move in.
More choice– if you get in early, you can choose from more available units and have your pick of the best options.
More options to buy– schemes like Help to Buy are often available on new-build properties, making them easier to purchase than older homes.
Chain free– as you’ll be the first owner, there’s no property chain to worry about when going through the buying process.
There are other factors to consider if you buy an older home, such as energy efficiency and repair costs. However, some buyers prefer older properties thanks to their period character, extra space and uniqueness. Whether you should buy a new build or an older home depends on your own circumstances and what attracts you to a home.
Is buying a new build a good investment?
Buying a new-build home can be a good investment if it makes sense for you. There are clear advantages over older properties, though you can expect to pay a higher price than an older home. Before you buy any property, you should do your due diligence on the area and see if it’s the right fit. With a MoveiQ property report, you can learn everything about a local neighbourhood and become an area expert before moving in.
Last Updated: October 30th, 2024
